The Cello Co. is considering whether according to IAS 36 - 'Impairment of Assets', any impairment loss has occurred on its major factory in the Sohar industrial area. Current carrying value (i.e. cost less accumulated depreciation), OMR 80m. Value in use, OMR 120m and Fair value less cost of disposal, OMR 60m. What is the amount of the impairment loss to be recognized? O a. Impairment loss: Nil. O b. Impairment loss: OMR 20,000. O c Impairment loss: OMR 60,000. O d. Impairment loss: OMR 40,000.

The Cello Co. is considering whether according to IAS 36 - 'Impairment of Assets', any impairment loss has occurred on its major factory in the Sohar industrial area. Current carrying value (i.e. cost less accumulated depreciation), OMR 80m. Value in use, OMR 120m and Fair value less cost of disposal, OMR 60m. What is the amount of the impairment loss to be recognized? O a. Impairment loss: Nil. O b. Impairment loss: OMR 20,000. O c Impairment loss: OMR 60,000. O d. Impairment loss: OMR 40,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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